Factors influencing cross-listing decision by Kenya Commercial Bank
Mageto, Margaret N
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This study examined the factors influencing the decision to cross-list shares at the Kenya Commercial Bank over the period 2008 to 2009. There are four main findings. First, the decision to cross list was influenced by the bank's regional expansion strategy. The bank's main aim is to be present in the whole Southern, Eastern and Central Africa region. It also wants to be a key player in commercial banking in the region. Secondly, the decision to cross-list was influenced by the firm level factors such as growth in size, increased regional presence and visibility and risk diversification. Thirdly, the decision to cross-list was influenced by environmental factors such as economic growth within the region, political stability, financial development and favorable regulatory regimes. Fourthly, the need to become a big regional player in the financial services industry influenced the Bank to cross-list her shares. This could be achieved partly through leveraging the bank's brand in the region.
University of Nairobi, Kenya